Bitcoin Mining

While Bitcoin mining is widely recognized as the main contributing factor towards the creation of new Bitcoin, as well as transaction validation, for the majority of users this process is quite obscure.

This part of the guide is designed to answer your questions about Bitcoin mining and related subjects.

An in-depth explanation of the mining process and how it correlates to other aspects that comprise the Bitcoin network, such as nodes, blockchain and a summary of why this process ensures transactional safety.

Beyond software, you also need specialized Bitcoin mining hardware in order to be a competitive miner in the current environment. You can learn more about the main manufacturers of Bitcoin Miners and additional details about the technology they produce.

While you could buy Bitcoin mining hardware for yourself and set it up in your home, office, or mining farm, this process is incredibly expensive. Another potential solution is cloud mining, which means to purchase mining power from a farm and reap both the costs and rewards that your machine generates in the remote location.

Since the current mining difficulty is very high, some people choose to collectively mine Bitcoin and share the rewards based on the amount of work each individual miner provided into finding the hash for the current block. Usually, cloud miners are automatically enrolled in mining pools and not every company out there allows for complete control over your miner.

If you own your own mining hardware, you can manually choose which pool you want to participate in, if any.

Copywriter, Journalist, Blockchain Enthusiast. Writing with Crypto-News.net since 2016. Loves to travel and experience different cultures. Highly ambitious and with an ever-increasing attraction towards quality work, products, services, and experiences. You can find him on Telegram where he has been known to spend his time making friends, and doing business. @ZoranSpirkovski